Jammu Kashmir suffering losses worth ₹20 lakh a day on smart bus service

October 28, 2025:The Jammu Kashmir government has admitted that the much-hyped Smart Bus service launched under the Smart City Mission is incurring heavy financial losses, nearly ₹20 lakh every day across Srinagar and Jammu.

The disclosure came in response to a query raised by MLA Kangan Mian Mehar Ali, who sought details about the project’s financial performance during the ongoing Assembly session.

According to a written reply submitted in the Assembly, the electric bus service, launched to promote clean and modern public transport, is running deep in the red. In Srinagar, the operational cost per kilometre is ₹60.74, while the revenue generated per kilometre is only ₹12 — resulting in a loss of ₹48.74 per km and a daily deficit of ₹9.74 lakh.

In Jammu Division, the losses are even higher. The running cost there is ₹62.66 per km, but the revenue is just ₹10.01, translating into a loss of ₹52.65 per km and a daily shortfall of nearly ₹10 lakh. Combined, both divisions are losing ₹19.75 lakh every day.

Officials said 98 e-buses are currently operating in Srinagar on routes including Parimpora–Harwan, TRC–Nasrullah Pora, Jehangir Chowk–Hazratbal, Pantha Chowk–Narbal, and TRC–Budgam Railway Station. In Ganderbal, 12 buses serve routes like Batamaloo–Ganderbal–Dal Gate.

Despite these mounting losses, the government clarified that there are no plans to extend the service to new areas such as Kangan. “Our focus is on stabilising operations and optimising costs before expansion,” an official said.

The government defended the initiative, calling it an essential step towards modernising public transport, reducing emissions, and improving commuter comfort. However, the figures have sparked concerns about the project’s long-term sustainability.

Private bus and mini-bus operators have voiced frustration, saying that free or heavily subsidised Smart Bus rides have reduced their income.

“Since Smart Buses started, our earnings have dropped drastically. The government must balance this system,” said one operator.